Over the last few months, central banks around the world put a whopping 63% of their cash into Euros and Yen, instead of the U.S. Dollar. Though not widely reported, this is a seismic shift. Normally, the U.S. Dollar is the top choice for central bank reserves.

Overall, the US Dollar represents 62% of the currency reserves at central banks, an all-time record low, and this percentage continues to precipitously drop. What does this all mean?

It means the US financial system may be about to receive the shock of its life, making the "Panic of '08" look like a stroll in the park.

How did we get here?

To make a long story short, the recent pace of Dollar devaluation began to accelerate under President Bush, a Republican-led Congress, and Fed Chairman, Alan Greenspan. Insistent on stimulating the economy out of the 2000-2001 recession, the Federal Reserve began lowering interest rates to artificial levels.

The Federal Government began borrowing and spending gargantuan amounts of money. Huge deficits began to emerge, and trillions were added to the national debt. American consumers were also busy spending themselves into oblivion.

Then, in the latter part of Bush's term, Fed Chairman, Ben Bernanke pushed the Dollar to an all-time record low with vast amounts of money printing and record low interest rates. A Democratic-led Congress further accelerated out-of-control spending from 2007-2008.

Finally, the "Panic of '08" struck, the Federal Government was bailing out Wall Street, and the Federal Reserve was printing trillions of dollars out of thin air to prop up the system.

What's happening now?

President Obama and a Democratic-led Congress have exploded the budget deficit to stratospheric levels and added trillions more to the national debt in a short period of time. After a brief rise during last year's panic, the Dollar is once again approaching its 2008 record low.

Due to a fragile economy and 10% unemployment, Fed Chairman Ben Bernanke remains resistant to raising interest rates anytime soon. Gold is setting new, nominal records. Global markets, particularly in China, Russia, India, and Brazil, are experiencing monstrous rebounds, much more significant than our own 55% rally off the March low.

The international community is beginning to express grave concern over the value of the US Dollar due to unsustainable debt levels and inflationary policies at the Fed.

What happens if the Dollar drops rapidly?

Prices of goods and services will skyrocket, oil prices will surge, investment portfolios will lose tremendous value in actual terms, and the U.S. market will experience unprecedented panic. Civil unrest could ensue.

The U.S. Dollar is the lifeblood of our economy. When a nation's currency becomes utterly devalued, the standard of living plummets. America's superpower status would be in serious jeopardy.

What can we do about it?

First, listen to those who predicted the crisis in the first place. Just like in the scientific world, valid models make accurate predictions. Gerald Celente, one of the world's top trends forecasters, specifically predicted the "Panic of '08".

US Senate candidate and investment guru, Peter Schiff, is famous for predicting a stock, credit, and housing collapse. Jim Rogers, the billionaire investor, called it. Nouriel Roubini, an NYU economist, warned of a serious recession.

Marc Faber, a top investment analyst, was sounding the alarm bells. And of all the 2008 presidential candidates, both Republican and Democrat, only one warned about a Dollar crisis and an imminent, severe recession: Dr. Ron Paul.

All of these individuals were ridiculed, scoffed at, or second-guessed, right up until the time their prescient forecasts were fulfilled. Now, these guys are hot commodities on all the major news networks. And what are most of them warning about now? The collapse of the Dollar. Look them up and take the necessary, precautionary steps.

Second, take this threat seriously. This is nothing less than the most pressing national security concern. Climate change, health care, cap and trade, and the wars in Iraq and Afghanistan are all critical issues, but, they are all dependent on the health of the Dollar.

If the Dollar falls, there will be no funding for any of these other endeavors. And if you think it can't fall, recall how only a year before the "Panic of '08" hit, the U.S. stock market had been at an all-time record high.

Third, take a proactive approach. Educate yourself about the Federal Reserve. Read some history about empires and nation-states that experienced currency crises and inflationary outbreaks. Scour the Internet for those who predicted the current crisis. Watch them on YouTube.

Put the next round of candidates to the test. If they have previously held office, how did they vote on fiscal matters? If they ran as candidates, did they predict the crisis? Are they talking about the US Dollar now? What are their specific proposals to head off a disastrous currency collapse?

America, the clock is ticking! A grave threat to our national security is knocking at the door. Unless we act soon, we may find ourselves in the graveyard of empires.